Foreign Agricultural Service GAIN Report Global Agriculture Information Network

Voluntary Report - public distribution Date: 10/19/1999 GAIN Report #C19021 Caribbean Basin Dairy Caribbean Import Market for Ice Cream and Cheese 1999

Prepared by: Willis Collie Caribbean Basin Agricultural Trade Office Drafted by: Fintrac Inc.

Report Highlights: This report highlights Caribbean market opportunities for ice cream and cheese. The region imports roughly $11 million of ice cream per year with the Dominican Republic, French West Indies, Netherlands Antilles, and Jamaica the largest markets. The region imports approximately $75 million of cheese products of which the United States is the third largest supplier.

Includes PSD changes: No Includes Trade Matrix: No Unscheduled Report Miami [C11], C1 GAIN Report #C19021 Page 1 of 13

Caribbean Import Market For Ice Cream and Cheese

Overview:

Caribbean imports of ice cream approach $11 million per year (see Table 1). The US exported $5.0 million and the Europe Union exported $5.7 million in 1997, making them the primary extra-regional suppliers. Many islands also have domestic producers of ice cream and, for the most part, these account for the majority of domestic consumption. Because of the ever expanding Caribbean market, including high demand by tourists during the period November-May, quality ice cream makers have set up franchises on many islands that distribute directly to hotels, restaurants, large supermarkets and resorts.

The Dominican Republic is the largest import market ($2.5 million), followed by Martinique ($2.1 million), Guadeloupe ($1.6 million), the Netherlands Antilles ($1.3 million), Jamaica ($1.2 million), Bermuda ($0.7 million) and the Bahamas ($0.5 million). European exports to the region are concentrated to the Dutch and French territories as well as to the Dominican Republic.

US exports to the region have been increasing rapidly, from $2.9 million in 1993 to $3.8 million in 1996 and $5.0 million in 1997 (see Table 2). Jamaica, the Netherlands Antilles, and the Dominican Republic are particularly strong growth markets for US suppliers. These three markets accounted for 62 percent of US ice cream exports to the region in 1997.

Table 1: Exports of Ice Cream to the Caribbean, US$000s, 1997 USA Canada EU Total Jamaica 1,234 1,234 Netherlands Antilles 1,051 34 244 1,329 Dominican Republic 855 20 1,669 2,544 Bermuda 707 2 709 Bahamas 522 7 529 Aruba 241 100 341 Cayman Islands 206 206 Barbados 102 25 127 Trinidad 55 55 BVI 33 33 Haiti 9 9 Grenada 5 5 Anguilla 4 4 St. Vincent 3 3 Guadeloupe* - 1,599 1,599 St. Lucia - 2 2 Montserrat - - Antigua - - Dominica - - Turks and Caicos - - Martinique* - 2,090 2,090 St. Kitts - - Total 5,027 54 5,738 10,819

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Source: Official export statistics of the US, the EU, and Canada Note: * EU statistics for these markets are 1996; 1997 unavailable

Table 2: US Exports of Ice Cream to the Caribbean, US$000s 1993 1994 1995 1996 1997 Jamaica 31 80 583 1,234 Netherlands Antilles 788 1,086 999 625 1,051 Dominican Republic 3 265 598 829 855 Bermuda 861 1,009 926 417 707 Bahamas 581 608 419 556 522 Aruba 302 207 252 359 241 Cayman Islands 16 141 96 17 206 Barbados 54 8 70 75 102 Trinidad 67 16 33 51 55 BVI 104 88 56 58 33 Haiti 5 53 9 Grenada 5 Anguilla 5 17 24 4 St. Vincent 37 13 3 Guadeloupe 6 29 169 St. Lucia 4 15 Montserrat 3 3 Antigua 74 26 6 Dominica 5 Turks and Caicos Martinique St. Kitts Total 2,855 3,521 3,658 3,794 5,027 Source: NTDB

The Caribbean import market for cheese is estimated to exceed $75 million. The United States is only the third largest supplier, supplying only 10 percent of total import demand (or $7.5 million in 1997), much less than that supplied by the EU (68 percent or $50.2 million) or New Zealand (19 percent or $13.9 million). Canada supplied roughly 3 percent (or $2.2 million) of import demand in 1997. See Table 3.

Eighty percent of US exports to the region are destined for the Dominican Republic, Bermuda, the Bahamas, and Jamaica. Of these countries, however, only in Bermuda does the US have the highest market share. While the US may have a low market share at present, US exports to the region have been growing rapidly (see Table 4). Exports in 1993 of $3.3 million grew to US$5.2 million in 1996 and US$7.5 million in 1997. In 1997, US cheese exports were comprised of $0.6 million of fresh cheese, $1.6 million of grated/powdered cheese, $2.7 million of other than grated/powdered, and $2.6 million of other cheese. See Table 5.

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Table 3: Exports of Cheese to the Caribbean, US$000s, 1997 USA Canada EU New Total Zealand Dominican Republic 1,929 25 2,508 65 4,527 Bermuda 1,260 - 409 370 2,039 Bahamas 1,185 1,284 688 213 3,370 Jamaica 888 313 92 8,663 9,956 Trinidad 734 602 805 3,257 5,398 Haiti 471 - 1,591 - 2,062 Barbados 305 - 471 ^ 776 Aruba 249 - 3,114 ^ 3,363 Cayman Islands 238 - 2 17 257 Netherlands Antilles 86 - 6,892 ^ 6,978 St. Lucia 78 - 1,084 480 1,642 St. Vincent 36 - 355 391 Turks and Caicos 20 - - - 20 Dominica 14 - 669 - 683 St. Kitts 11 - 170 - 181 Guadeloupe* 7 - 14,511 - 14,518 Antigua 4 21 459 ^ 484 BVI - - 1 ^ 1 Martinique* - - 16,272 - 16,272 Grenada - - 62 802 864 Anguilla - - - ^ - Montserrat - - 2 - 2 Total 7,515 2,245 50,157 13,867 73,784 Source: Official export statistics of the US, the EU, and Canada Notes: * EU statistics for these markets are from as 1997 is unavailable; ^ New Zealand data unavailable

Table 4: US Exports of Cheese to the Caribbean, US$000s 1993 1994 1995 1996 1997 Dominican Republic 356 753 1,253 1,424 1,929 Bermuda 1,020 1,067 1,149 1,117 1,260 Bahamas 450 262 475 321 1,185 Jamaica 208 265 515 798 888 Trinidad 156 398 391 323 734 Haiti 60 40 225 385 471 Barbados 27 73 148 118 305 Aruba 412 380 369 345 249 Cayman Islands 16 63 44 41 238 Netherlands Antilles 390 329 167 175 86 St. Lucia 3 20 40 66 78 St. Vincent 18 10 36 Turks and Caicos 106 37 16 3 20 Dominica 12 14

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1993 1994 1995 1996 1997 St. Kitts 25 11 Guadeloupe 13 20 6 7 Antigua 8 4 BVI 5 3 15 Martinique 30 7 4 4 Grenada 4 13 Anguilla Montserrat Total 3,275 3,712 4,858 5,151 7,515 Source: NTDB

Table 5: US Exports of Cheese to the Caribbean, US$000s, 1997 1993 1994 1995 1996 1997 HS 040610 -- Fresh cheese (including whey cheese) and 46 246 391 342 642 curd HS 040620 -- Grated or 528 671 1,000 832 1,606 powdered cheese HS 040630 -- Processed cheese (excl. grated and 579 871 1,703 1,685 2,687 powdered) HS 040690 -- Cheese, not 2,121 1,925 1,764 2,292 2,582 elsewhere specified Total 3,274 3,713 4,858 5,151 7,517 Source: NTDB

Processed cheese in particular is popular with consumers. The US faces stiff competition in the cheese market because of subsidized cheese coming from Europe and New Zealand. However large cheese manufacturers in the US have been able to increase sales of their processed cheese products as they have a longer shelf life than anything coming from Europe. The Europeans tend to export fresh whole blocks of cheese like Gouda, Brie and Roquefort, and New Zealand exports cheese blocks made from cow’s milk. The New Zealanders have established partnerships in Jamaica now where their whole blocks of cheese get sliced, packaged and delivered by local distributors adding new competition to US processed cheese products.

Jamaica

Current Suppliers. The US dominates ice cream imports with a 97 percent import market share in 1998 (see Table 6). The only major competition comes from domestic producers. Jamaica imported $1.4 million worth of ice cream and edible ice in 1997. Premium or specialty brands of ice cream are the main type of import from the US.

Table 6: Jamaican Imports of Ice Cream and Edible Ices, 1997 US$ 000s Share MTs Share US 1,317 96% 587 97% Barbados 37 3% 14 3% Canada 7 1% 1 0% Trinidad & Tobago 6 0% 3 0%

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US$ 000s Share MTs Share Total 1,367 605 Source: Statistical Institute of Jamaica

Jamaica imported $13.7 million or 4,736 MTs of cheese in 1997 (see Table 7). New Zealand dominated the import market with an 85 percent import market share by volume, followed by the US (10 percent), and Canada (2 percent). The market has done very well for cheese in the past few years owing to the rise in popularity for snack foods such as cheese dips, cheese slices and other processed cheese products.

Table 7: Jamaican Imports of Cheeses, 1997 US$ 000s Share MTs Share New Zealand 11,153 81% 4,027 85% US 1,779 13% 478 10% Canada 324 2% 103 2% Australia 152 1% 38 1% St. Helena 98 1% 58 1% Ireland 80 1% 15 0% Netherlands 34 0% 5 0% Mexico 29 0% 5 0% Denmark 17 0% 3 0% Japan 15 0% 4 0% UK 7 0% <1 0% TOTAL 13,688,281 4,736 Source: Statistical Institute of Jamaica

Distribution and Sales Channels. A number of US ice cream and cheese companies have entered the Jamaican market through franchises or distributorship arrangements. The Jamaican market is now quite familiar with brands such as Haagen Dasz, Baskin Robbins and Kraft. The marketing of many branded US products is assisted by advertising programs of US companies. The fast food sector has grown rapidly and is still expanding in Jamaica. Ice cream and processed cheeses are in high demand in this sector of the market. Exporters would benefit from developing strong relationships with Jamaican importers.

There are two common distribution channels for imported dairy products in Jamaica: distributors/importers and direct buying by retailers. Larger supermarkets and some hotels import their own products. This helps them to be more price competitive and has worked well where the purchasing is being done for a group. Individual supermarkets, hotels, restaurants and institutions purchase from the local importers/distributors.

Table 8: Ice Cream and Cheese Products Seen for Sale at Selected Kingston Supermarkets Product Brand Name Weight Price Price (J$) (US$) Ice Cream Vanilla Sugar Free – US Haagen Dasz 476 ml 149.99 4.14 Vanilla – Jamaica Cremo 32 oz 200.00 5.52 Grapenut – Jamaica Cremo 1.75 l 190.00 5.24 Rainbow Flavour – Jamaica Cremo 1.75 l 200.00 5.52 Vanilla – Jamaica Buckingham 1.75 l 190.00 5.24 Rum & Raisin – Jamaica Buckingham 32 oz 200.00 5.52

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Hazlenut – US Haagen Dasz 1.45 l 205.99 5.68 Peach – US Haagen Dasz 1.75 l 200.99 5.54 Peach – Jamaica Devon House 1.45 l 205.99 5.68 Cheese Slices – US Kraft 170 g 73.60 2.03 Tin – Jamaica Grace 1 kg 272.99 7.53 Tin – Jamaica Island Dairies 1 kg 260.99 7.20 Pack – US Philadelphia 227 g 73.90 2.04 Tin – Jamaica Tastee 1 kg 262.99 7.25 Pack – Jamaica Chesdale Chedder 454 g 126.50 3.49 Slice – Jamaica Anchor 454 g 159.90 4.41 Slice – UK Kerry Gold 170 g 68.30 1.88 Cream Cheese – US Philadelphia 227 g 83.00 2.29 Source: On-site survey, December 1998 Note: Exchange rate (US$ 1.00 = J$ 36.25)

Consumer Preferences. The most popular local ice cream is Cremo and is much cheaper than the premium ice creams that get imported (Haagen Dazs). Nevertheless, there has been a greater demand for foreign brands especially from the resorts. Local brands also do better because they appeal to lower end clients. One can purchase almost two liters of local ice cream for almost the same amount as half a liter of foreign ice cream.

According to retailers, most of the cheese sold in stores is processed. This includes not only recognized brands such as Kraft from the US, but also New Zealand brands of processed golden cheddar that are very popular with consumers. Some New Zealand cheddar is canned in Jamaica and is distributed with a local brand label (Tastee). Most cheese is sliced and pre-packaged for consumers. Deli style cheese counters are not generally available in shops in Jamaica. Some European cheese (Gouda and Roquefort) is sold but it is too expensive for most Jamaicans.

Regulatory Requirements. Products imported into Jamaica must meet the requirements of the Jamaican Bureau of Standards Act, Processed Food Act and Weights and Measures Act. These include requirements for labeling. Items sold in Jamaica must conform to recognized international quality specifications. Jamaica generally follows US standards. In recent years, the Bureau has become increasingly vigilant in terms of monitoring the quality of products sold on the local market.

Tariffs and Other Import Duties. As a member of the Caribbean Community, the Jamaican government applies CARICOM’s Common External Tariff (CET) to all goods and services imported into the country from non-CARICOM sources.

The following duties and fees apply to Jamaican imports:

1. Standard tariff rate (see Table 9), which is levied against CIF value; 2. Stamp tax (see Table 9), applicable on certain products, which is levied against the sum of the CIF value and standard tariff amount; 3. General Consumption Tax (applicable on certain products) which is levied against the sum of the CIF value and the first two duties (see Table 9); and 4. Jamaican Customs “users fee” of J$100 (under US$3) on all import shipments.

Table 9: Jamaican Tariffs and Fees for Ice Cream and Cheese

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Product Import Duty Additional General Stamp Duty Consumption Tax Ice Cream 25 - 15 Edible Ice 25 - 15 Cheese, in packages of 1 KG or more 5 - - Curd 5 - 15 Cheese, not elsewhere specified 5 - 15 Source: Jamaica Customs Integrated Tariff, 1996

Netherlands Antilles

Current Suppliers. Curacao imported $317 thousand or 93 MTS of ice cream in 1998 (see Table 10). The US is the main supplier with a import market share (by volume) of 4 percent, followed by Belgium (30 percent) and the Netherlands (25 percent). There is also domestic ice cream production. Imported premium brands, which also supply the tourist trade, include Haagen Dazs, Bordens and Ola from Holland. Imports into the other islands comprising the Netherlands Antilles (primarily St. Maarten and Bonaire) are probably double that being imported into Curacao.

Table 10: Curacao Imports of Ice Cream and Edible Ices, 1997 US$ Share KG Share US 144,899 46% 40,647 44% Netherlands 90,564 29% 23,391 25% Belgium 79,729 25% 28,388 30% Other 1,344 0% 647 1% Venezuela 259 0% 138 0% TOTAL 316,795 93,211 Source: Central Bureau of Statistics, Netherlands Antilles

The Netherlands Antilles imported nearly $7 million of cheese in 1997 (see Table 11). The Netherlands dominated the market with a 77 percent share, followed by New Zealand (12 percent) and the US (9 percent). Political ties between the islands and the mother country guaranteed a market share for the classic Gouda, but cheaper more generic brands of cheese from the Netherlands were also popular amongst consumers. The US primarily exported processed to the Netherlands Antilles.

Table 11: Netherlands Antilles Imports of Cheeses, 1997 US$ Share Kg Share Netherlands 5,679,921 81% 1,211,112 77% New Zealand 808,512 12% 185,707 12% US 392,886 6% 143,578 9% Denmark 81,219 1% 23,429 1% Venezuela 16,430 0% 14,193 1% Italy 7,489 0% 608 0% Belgium 10 0% 20 0% Total 6,986,466 1,578,647 Source: Central Bureau of Statistics, Netherlands Antilles

Distribution Channels. As an alternative to the use of an agent for the distribution to the local market, a foreign

UNCLASSIFIED Foreign Agricultural Service/USDA GAIN Report #C19021 Page 8 of 13 company is allowed to set up one or more branches, provided a franchise license to open the new business is obtained. A branch has no separate legal existence but in other respects it has similar status to a corporation. It must be registered with the Commercial Register held by the local Chamber of Commerce and Industry.

Supermarkets account for an estimated 50 percent of retail food sales and there are over 100 small stores or “mini-markets” located throughout the island for convenience purchases. Price is the determinant factor behind the increase in the supermarket sector, as the small stores cannot compete with the low prices and product diversity offered by the supermarkets. Smaller businesses may survive by carrying a selected number of products for more niche markets, but the trend toward supermarket growth is expected to continue.

Consumer Preferences. The Netherlands Antilles is keen to promote its domestic ice cream production, so imports are generally of premium ice cream from the US, Holland and Belgium. Cheese, on the other hand, is imported from a variety of countries including the US, Holland, Denmark and New Zealand. Dutch cheese (e.g Gouda) is prevalent at all the markets, but US processed cheese is convenient and cheap. However, since price is generally not an issue with consumers, retail vendors are often challenged to provide new varieties. Samples of cheese at the supermarkets is a very popular way of promoting product in the Netherlands Antilles.

Table 12: Ice Cream and Cheese Products Seen for Sale at Selected Curacao Supermarkets Price Price Product Brand Name Pack (NA (US$) Guilder) Ice Cream Ice cream – Local Lovers ½ gallon 12.99 7.26 Diet ice cream Lovers 1 quart 9.59 5.36 Ice cream - Local Lovers 1 quart 6.89 3.85 Ice cream - Local Lovers 1 pint 3.79 2.12 Ice cream – Local Lovers Premium 1 pint 6.15 3.44 Ice cream - Local Ritz 1 quart 6.75-8.50 3.77-4.75 Ice cream – Local Ritz 1 pint 4.25-4.35 2.37-2.43 Ice cream - Local Ritz ½ gallon 14.40 8.04 Vanilla – USA Healthy Choice 1 quart 10.16 5.68 Ice cream – NL Ysboerke 1 l 13.65 7.63 Côte d’Or – NL Ola 1 l 9.65 5.39 Applecrunch – NL Att 1 l 7.35 4.11 Vienetta – NL Ola 1 l 8.10 4.53 Ice cream – NL Att 1 l 6.35-7.80 3.55-4.36 Ice cream – NL Ysboerke 1 l 13.65 7.63 Ice cream – NL Ysboerke 2.5 l 22.50 12.57 Cheese Whole gold cheese – NL Kleester Lb 52.92 29.56 Natural whole – NL Aerobic Lb 67.26 37.58 Gouda whole – NL Van Tol Lb 29.21 16.32 Baby whole – NL Edammer Kg 11.60 6.48 2% milk singles – USA Kraft 12 oz 5.10 2.85 Fat free singles – USA Kraft 16 oz 6.80 3.80 Singles – USA Kraft 8 oz 3.65 2.04 Singles – USA Kraft 12 oz 6.55 3.66

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Singles – USA Kraft 24 oz 8.95 5.00 Deluxe – USA Kraft 6 oz 3.35 1.87 Paisa cheese No Brand Name Kg 14.00 7.82 Llanero cheese No Brand Name Kg 15.00 8.38 – NL Goudkuupje 100g 1.05 0.59 Long blegen (young natural No Brand Name Kg 11.05 6.17 cheese) – NL Parmesan grated – USA Kraft 1 lb 11.24 6.28 Old cheese – NL No Brand Name Kg 13.35 7.46 Young cheese – NL No Brand Name Kg 9.10 5.08 Young cheese whole – NL Gouda Per piece 26.95 15.06 Old cheese whole – NL Gouda Per piece 39.86 22.27 Belgen (matured) – NL No Brand Name Per piece 29.71 16.60 Cheese slices – USA Kraft Monterey Jack 1 pack 3.39 1.89 Cheese slices – USA Borden 8 oz 5.25 2.93 Cheese slices – USA Borden 12 oz 7.20 4.02 Matured cheese – NL No Brand Name Kg 11.00 6.15 Young cheese – NL No Brand Name Kg 7.87 4.40 Young matured – NL No Brand Name Kg 9.90 5.53 “Komyn” cheese – NL No Brand Name Kg 10.88 6.08 Old matured cheese – NL No Brand Name Kg 11.90 6.65 Old cheese – NL No Brand Name Kg 12.90 7.21 Source: On-site survey, December 1998 Note: Exchange Rate (US$ 1.00 = NA Guilder 1.79)

Import Requirements. Separate health regulations are being developed for ice cream and cheese, and will make up a new Food Act to be published in 1999. For more information please contact the Geneeskundige- en Gezondheidsdienst (Public Health Authority), Piscaderaweg 49 (Tel. 011-5999-625800).

At Customs, an importer is required to provide two invoices and, if registration is required, a third invoice is required for the Department of Economic Affairs. An invoice should state the value of the good (f.o.b. or c.i.f.) and other normal commercial information such as marks, numbers, consignee’s names, etc. Four copies of the bill of lading are required, showing the name of the shipper, name and address of consignee, port of destination, description of goods, listing of freight and other charges, number of bills of lading in the full set, and date and signature of the carrier’s official acknowledgment of receipt on board of the goods for shipment.

Tariffs and Duties. The Netherlands Antilles levies two different import duties: a standard duty rate against the c.i.f. value of a product and an “economic levy” which applies to products competing against locally produced goods. There is no import duty for cheese. The import duty for ice cream is 22 percent (calculated on the c.i.f. value). There is also an economic levy of NA Guilders 2.30 (about US$1.28)/liter of ice cream. In principal temporarily imported goods such as samples are exempt from customs duties. Customs clearance is however always required.

Bermuda

Current Suppliers. The US dominates the Bermudan market for ice cream, supplying over 99 percent of 1997 imports of $1.0 million (see Table 13). Much smaller amounts also enter from Canada and the UK.

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Table 13: Bermuda Imports of Ice Cream and Edible Ice, 1997 US$ Share US 1,041,284 99% Canada 4,688 1% UK 1,303 <1% Total 1,047,275 Source: Bermuda Government Statistics Department

Official Bermudan import statistics do not disaggregate cheese imports from dairy imports. However, based on export statistics from supplying countries, the Bermudan import market is estimated to exceed $2.0 million (see Table 3). The US supplies roughly 62 percent of import demand (by value), followed by the EU (20 percent), and New Zealand (18 percent).

Distribution Channels. Many of the supermarkets on Bermuda also function as wholesalers, selling on to other supermarkets, hotels and restaurants. Bermuda’s supermarkets include The Marketplace, Arnold’s, Lindo’s Family Foods, The Supermart, and White’s.

There are several smaller supermarkets which do their own importing as well as buying from island distributors including Butterfield Vallis, BGA Group, A. C. Brewer Distributors and Viking Food Ltd. In addition to the retail sector, these groups also handle food distribution for hotels, restaurants and institutions.

Table 14: Ice Cream and Cheese Products Seen for Sale at Selected Bermudan Supermarkets Product Brand Name Pack Price (B$=US$) Ice Cream Bermuda Creamery Local ½ gallon 5.85 Haagen Dazs US 1 pint 3.50 Dove Bars US 1 pint -- Klondike Bars US -- -- Breyer’s US ½ gallon -- Cheese Portuguese Sao Jorge 1 lb 6.99 Red Leicester UK 1 lb 4.85 Cheddar – US Kraft Singles 12 oz 3.00 Parmesan – US Kraft shredded 3 oz 1.50 Sharp cheddar – US Kraft shredded 8 oz 2.00 Mozzarella – US Kraft shredded 8 oz 2.00 Caerphilly – US Perdue 1 lb 4.85 Cheddar – US Cracker Barrel 8 oz 4.85 Gouda – NL No Brand Name -- -- Source: Onsite survey, December 1998 Note: Exchange rate (B$ 1.00 = US$ 1.00)

Consumer Preferences. The only domestic producer of ice cream is the Bermuda Creamery. Until recently there was one other local competitor, Simmons, who produced high quality sorbet, but they were bought out by the Bermuda Creamery. One retailer estimated that Bermuda Creamery ice cream controls 90 percent of the market because of its good quality yet lower price.

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The majority of cheese imported is processed cheese like Kraft. Golden from New Zealand is very popular with consumers at the moment; consumers refer to it as ‘rat cheese’. Cracker Barrel’s cheddar is actually considered of a higher quality and longer lasting than most other cheddar, but consumers prefer ‘rat cheese’ that is imported in large blocks and cut at the deli counter.

Import Requirements. Provided the ice cream or cheese to be imported into Bermuda conforms with the Pure Food or Drug Act of the country of origin, it is acceptable in Bermuda. There is no Bermuda regulation about labels; a label adequate in country of manufacture will be suitable. Labels need not show country of origin, although this must be shown on shipping papers.

Tariffs and Duties. . Ice cream and other edible ice are subject to a 22.25 percent import duty. There is zero duty on cheese. In addition, all imported goods are also assessed a “wharfage tax,” that includes an additional charge of 1.01 percent of value for use of the dock or airport of entry. There are no VAT or stamp taxes for goods imported into Bermuda.

Regular importers can apply for Standing Deposit Entry or Deposit Entry status from the Civil Air Terminal, allowing the importer to pay a deposit up-front towards customs fees. This facilitates quick customs clearance and collection of goods.

Bahamas

Current Suppliers. The Bahamas imported nearly $2.0 million of ice cream and edible ice in 1997, an increase of 58 percent in value and by 68 percent in volume over 1996 levels (see Table 15). The US supplied virtually all imported product, although the US does face some competition from local producers.

According to Bahamas import statistics, 2.2 million kilograms of cheese was imported in 1997 with a total value of $6.7 million (see Table 16). This was an increase of 18 percent in volume and 13 percent in value from 1996 levels. The US had 90 percent of the total import market share according to Bahamian statistics, although since the Bahamas counts all product shipped from the US as US product (even if transhipped), this import market share is erroneous. Based on export figures of major suppliers (see Table 3), the US is estimated to have about 35 percent of the import market, with Canada holding 38 percent. Other major suppliers include the EU (20 percent) and New Zealand (6 percent).

Table 15: Bahamas Imports of Ice Cream and Edible Ices, 1997 US$ KG Share US 1,953,657 1,043,738 100% Jamaica 509 455 <1% Total 1,954,166 1,044,193 Source: Bahamas Department of Statistics

Table 16: Bahamas Imports of Cheese, 1997 US$ Share KG Share US 6,086,063 90% 1,951,788 89% Canada 304,266 4% 98,951 5% UK 171,266 3% 45,470 2% New Zealand 155,152 2% 61,941 3% Ireland 38,129 1% 11,035 1% Puerto Rico 482 <1% 36 <1%

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France 179 <1% 9 <1% Jamaica 13 <1% 1 <1% Total 6,755,550 2,169,232 Source: Bahamas Department of Statistics

Distribution Channels. The distribution structure in the Bahamas for ice cream and cheese reflects the relatively small size of the country. Exporters to the Bahamas will find that most importers are island-based supermarket owners. Otherwise these products are imported directly by the hotels and resorts. The three major grocery store chains are City Markets (owned by US-based Winn Dixie), Super Value, and John Chea and Sons. They are the major sellers of ice cream and cheese because of the necessity for an adequate cold chain that most smaller retail outlets cannot provide.

Table 17: Ice Cream and Cheese Products Seen for Sale at Selected Bahamian Supermarkets Product Brand Name Weight Price local Ice Cream Dairy Maid Local ½ gallon 4.78 Superbrand vanilla Local ½ gallon 3.28 Prestige (all flavors) Local ½ gallon 4.78 Breyer’s vanilla light US ½ gallon 4.98 Breyer’s mint chocolate chip US ½ gallon 6.69 Cheese Sharp Cheddar – US Kraft 8 oz 2.58 Monterey Jack – US Kraft 8 oz 2.78 Medium Cheddar – US Kraft 8 oz 2.58 Extra Sharp – US Cracker Barrel 10 oz 3.45 Barley Swiss – US Cracker Barrel 10 oz 3.45 Sharp 2% reduced fat milk – US Cracker Barrel 10 oz 3.18 American White 16 slices – US Kraft 16 slices 3.49 Singles – US Kraft 16 slices 3.68 Fat free – US Kraft 16 slices 3.98 Singles – US Superbrand 16 slices 2.28 Singles – US Superbrand 24 slices 2.78 Mozzarella – US Superbrand 16 slices 3.58 Swiss – US Superbrand 16 slices 3.68 Singles – US Borden’s 16 slices 2.68 Fat free – US Borden’s 16 slices 3.48 Source: Onsite surveys, December 1998 Note: Exchange rate (B$ 1.00 = US$ 1.00)

Consumer Preferences. Several importers and retailers have struck up agreements with large cheese and ice cream manufacturers in the US including Kraft, Borden’s and Haagen Dazs. Even local consumers prefer US brands of ice cream and are also willing to pay higher prices.

At least 90 percent of the cheese sold on the island is processed cheese. Cow’s milk cheese from New Zealand is gaining in popularity and a few air freight shipments have arrived in the past year. Also some exclusive resorts have insisted on buying European cheeses to please their clientele, although one importer stated that demand is too small to establish a regular import cycle. Some cheddar also comes from the UK, Ireland and Canada.

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Import Requirements. Since most food imports are brought in from the US, local food restrictions in the Bahamas are not extensive and US quality standards are generally followed. For imports of ice cream and cheese into the Bahamas, no import permit is needed.

Tariffs and Duties. All cheese and curd are charged a 10 percent duty on c.i.f. value. Ice cream and other edible ice is charged a higher duty of 35 percent. In addition to these tariff rates, there exists a stamp tax of 2 percent on c.i.f. value.

UNCLASSIFIED Foreign Agricultural Service/USDA